The Consumer Financial Protection Bureau has filed its first civil law suit, suing a Los Angeles law firm that charged homeowners for mortgage modifications that it allegedly didn’t perform.
The CFPB says Chance Gordon and his law firm targeted distressed borrowers, promising them they could reduce their monthly mortgage payments. CFPB says he charged fees ranging from $2,500 to $4,000 but delivered no meaningful services.
The charge is made in a 29-page complaint the CFPB filed with the U.S. District Court for the Central District of California. The complaint was filed July 18.
CFPB was quiet about the move; most of its actions are trumpeted on its web site, but www.consumerbureau.gov has no mention of it.
The court granted CFPB’s request for a temporary restraining order against the law firm and a court-appointed receiver has taken possession of the law firm. Here is the restraining order.
The suit against the Gordon Law Firm was applauded by lawyers active in the Loan Modification Scam Prevention Network. The Network maintains a database of consumer complaints against firms and individuals claiming to provide loan modification services; it said the database has 60 complaints against the Gordon Law Firm.
Here is the Prevent Loan Scams web site, a project of the Lawyers’ Committee for Civil Rights Under Law.